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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Taxes [Abstract]  
Income Taxes Income Taxes
 
Income tax expense (benefit) was as follows (in millions):
Years ended December 31,
 202520242023
Current:  
   Federal$1,150 $1,050 $1,192 
   State234 202 235 
   Foreign— 2 1 
Total current1,384 1,254 1,428 
Deferred:  
   Federal310 299 174 
   State5 64 (75)
   Foreign— — — 
Total deferred315 363 99 
      Total$1,699 $1,617 $1,527 

Reconciliation of the U.S. federal statutory income tax rate to the effective tax rate was as follows:
Years ended December 31,
 202520242023
U.S. Federal statutory income tax rate$1,507 21.0 %$1,396 21.0 %$1,389 21.0 %
State and local income tax, net of federal tax benefit a
189 2.7 211 3.2 131 1.9 
Nontaxable or nondeductible items14 0.2 14 0.2 16 0.2 
Changes in unrecognized tax benefits(4)(0.1)1 — (5)— 
Tax credits(6)(0.1)(6)(0.1)(4)— 
Foreign tax effects— — 2 — — — 
Tax law change effects— — — — — — 
Effects of cross-border tax laws— — — — — — 
Changes in valuation allowances— — — — — — 
Other, net(1)— (1)— — — 
      Effective tax rate$1,699 23.7 %$1,617 24.3 %$1,527 23.1 %
a  The following state taxes made up the majority (greater than 50 percent) of the tax effect in this category, in descending order: Montana and Kansas in 2025; Missouri, Illinois, California, Nebraska, and Kansas in 2024; Illinois, Nebraska, California, and New Mexico in 2023.

Income taxes paid, net of refunds were as follows (in millions):
 
Years ended December 31,
 202520242023
United States$1,145 $1,128 $1,150 
State223 224 207 
Foreign— 1 1 
      Total income taxes paid, net of refunds$1,368 $1,353 $1,358 
The components of deferred tax assets and liabilities were as follows (in millions):
 December 31,
2025		December 31,
2024
Deferred tax liabilities:  
      Property and equipment$(15,581)$(15,346)
      Operating lease right-of-use assets(269)(243)
      Other(822)(806)
             Total deferred tax liabilities(16,672)(16,395)
Deferred tax assets:  
      Operating lease liabilities266 239 
      Compensation and benefits170 168 
      Casualty and environmental97 96 
      Other154 196 
             Total deferred tax assets687 699 
             Net deferred tax liability$(15,985)$(15,696)
BNSF is included in the consolidated U.S. federal income tax return of Berkshire. BNSF’s tax expense and liabilities have been computed on a stand-alone basis, and all of its currently payable federal income taxes are remitted to Berkshire. See Note 16 to the Consolidated Financial Statements for information related to income taxes paid to Berkshire during 2025.

All U.S. federal income tax returns of BNSF are closed for audit through the tax period ended December 31, 2013. BNSF is currently under examination for the years 2014 through 2020 as part of Berkshire's consolidated U.S. federal income tax return.

BNSF has various state income tax returns in the process of examination, administrative appeal or litigation. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states.

Uncertain Tax Positions
The amount of unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023, was $44 million, $48 million and $47 million, respectively. The amount of unrecognized tax benefits as of December 31, 2025 that would affect the Company’s effective tax rate if recognized was $36 million, computed at the federal income tax rate expected to be applicable in the taxable period in which the amount may be incurred by the Company. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
Years ended December 31,
 202520242023
Beginning balance$48 $47 $52 
Additions for tax positions related to current year7 8 6 
Additions (reductions) for tax positions taken in prior years(2)1 (2)
Additions (reductions) for tax positions as a result of: 
      Lapse of statute of limitations(9)(8)(9)
             Ending balance$44 $48 $47 

It is expected that the amount of unrecognized tax benefits will change in the next twelve months; however, BNSF does not expect the change to have a significant impact on the results of operations, the financial position or the cash flows of the Company.
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in income tax expense in the Consolidated Statements of Income. The Company had recorded a liability of approximately $10 million for interest for both of the years ended December 31, 2025 and 2024.